I went to work today and got a surprise from a co-worker. He handed me dana 30 and dana 35 4.56 gears full kit. I was wondering if I plan on a 2" lift and 31"s no bigger than 33"s will ever go on would this be a good gear ratio with the 2.5L 4 banger?

I currently have 4.56 gears and love them, but I am running 35" tires (4.0, 5-speed). I had 35's on my old YJ that was a 4 banger with 4.11 and it was fine around town, but on the interstate there was a lot of downshifting.
Anyway, here is a link that I like to play around on when looking at changing gear ratio's it will give you an idea of what you will be reving at speed.

I wouldnt even get the 8.8. Just spend $550 and get the Superior C-Clip Eliminator kit for the rear 35 and call it quits.... for tires 33" and lower you'd be good to go for a LONG time.

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Building my junk with more junk, so Im always on the look out for more junk....Free to cheap preferably. :D
My junk http://www.jeepforum.com/forum/f22/survivor-project-driveway-frame-swap-33s-build-1280626/index3.html

well im going to go with a 8.8 eventually so wondering if I even bother regear yet. Might just hold out until I get the 8.8 and regear then.

sell the D35 gears kit and put that towards an 8.8 with 4.56 gears. THEN re gear the front axle.
after your 8.8 is in you can sell the D35. it shouldnt be too hard to get rid of it because it has 4.10s in it already.